CURRAN'S OFFICE, 47 OTHER STATES REACH CONSUMER PRIVACY AGREEMENT WITH TOYSMART
Baltimore - Attorney General J. Joseph Curran, Jr. announced that the privacy of approximately 250,000 consumers will be protected under an agreement approved by the U.S. Bankruptcy Court involving Maryland, 47 other states, and Toysmart.com. Toysmart has agreed to destroy its customer list, and in exchange, Buena Vista Internet Group, a Disney subsidiary, will pay the company $50,000.
"Consumers have every reason to expect that personal information will remain private when a Website makes that promise," Curran said. "We expect companies to honor their own policies and we urge consumers to review privacy statements before revealing personal information online."
The Federal Trade Commission also filed a lawsuit in U.S. District Court, alleging that the proposed sale of the customer list would be illegal. When the FTC sought to settle its case with Toysmart, Maryland, 42 states, two territories and the District of Columbia joined an objection to the proposed settlement filed by Massachusetts because it would have allowed the customer list to be sold to a third party without first informing Toysmart's customers and obtaining their consent. The FTC, Texas and New York separately entered into the same agreement that Toysmart reached with Maryland and the 47 other states.